Business 2 min read By Lauren Baxter
Cinemark posts record third-quarter revenue as box office rebounds
Cinemark, the third-largest U.S. movie theater chain, reported a 23% jump in revenue to $1.1 billion for the three months ended in September, its best third quarter ever, and its shares rose in premarket trading.
Cinemark, the nation's third-largest movie theater chain, reported revenue of $1.1 billion for the three months ended in September, a 23% increase and its best third quarter on record. The company's shares were up about 4% in premarket trading following the results.
The gains were driven by a broad rebound at the box office. Cinemark said revenue grew across several categories, including premium large-format screens such as XD and Imax, as well as its ScreenX format, which offers wide, multi-wall viewing. The strength in premium formats suggests that audiences are willing to pay more for the big-screen experience when the films on offer draw crowds.
The results point to a recovery that has taken hold after several difficult years for exhibitors. Theater chains were hit hard by pandemic-era closures and by a slower flow of big releases, and many have spent the past few years trying to win back moviegoers who had grown accustomed to watching films at home. A record third quarter indicates that demand has returned strongly enough to lift even the largest and most established operators.
The report also comes as the wider entertainment business continues to weigh consumer spending across media. Movie theaters compete for leisure dollars with streaming services, and the premium formats that drove Cinemark's growth are one way exhibitors are trying to offer something a living room cannot match. The company's ability to keep revenue climbing in that environment will be closely watched by investors and by the studios that depend on theaters to launch their films.
Source: deadline.com
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